Thursday, February 26, 2009

05.21.08: In the April 14 issue of Quantum Growth you advised subscribers to sell DRYS and AMKR. However, the current issue advised us to buy back these two stocks at a considerably higher price. Can you please explain why? I’m confused.

Louis Navellier's AnswerThanks for the email, and no need for confusion. The reason I sold DryShips (DRYS) and Amkor Technology (AMKR) and then bought them both back is that Quantum Growth is a trading service—it’s not buy and hold investing. That means that stocks will come and go in Quantum pretty quickly. On occasion, I’ll buy a stock higher than when I sold it just a few weeks earlier. In fact, some of our best trades in Quantum have been our “second timers.” Keep in mind though; I didn’t sell those stocks because the price was too high. I sold them because the risk was too high. Now the risk has come down even though the price is higher. That’s important to remember when trading stocks.

AMKR

DRYS

You can notice how the risk came down in both charts... what an expert!!!